Gelonghui November 17丨Huahe Holdings (09938.HK) announced that according to a preliminary review of the Group's unaudited comprehensive management accounts for the 6 months ended September 30, 2023 and information currently available to the Board of Directors, the Group is expected to record a comprehensive net loss of no more than HK$1.9 million in the 6 months ending September 30, 2023, while the unaudited consolidated net profit for the same period in 2022 is about HK$4.3 million.
The anticipated transition from profit to loss during the period is mainly due to: (i) non-cash projects of about HK$3.4 million due to changes in the fair value (loss) of investment properties; (ii) in the six months ending September 30, 2023, the projects at hand were generally completed, resulting in a decrease in revenue and gross profit; and (iii) a decrease in other revenue, mainly involving one-time government subsidies granted by the Hong Kong Government in the same period in 2022.